Many domestic merchants now prefer to process with an Offshore Merchant Account as it offers many advantages.
Since e-commerce businesses are becoming more and more competitive with time, both the business owners and the customers find offshore merchant accounts beneficial, mainly because there is no hassle to open an offshore merchant account and getting a better service is easier. The usual requirements of having a business that has existed for a minimum of two years and making a security deposit of several thousands of dollars are not needed when an offshore merchant account is created. That is why it has now become comparatively easier for merchants to get accepted for an offshore merchant account. The only difference between an offshore merchant account and a simple merchant account is mainly the bank location, which for an offshore merchant account mostly resides in a different country.
Some offshore banks and credit card processors do charge a slightly higher processing fees and discount rates however when the merchant realizes the tax savings they are incurring by processing offshore they discover they are far better off than if they had remained processing onshore. High risk businesses like online casinos, adult, pharmacy and travel merchants prefer using an offshore merchant account as most domestic banks (US) decline these business categories, owing largely to the high volume sales, potential chargeback and refunds etc. Offshore banks tend to be more liberal with their under-writing policies, tax savings and there are no sales volume restrictions.